Alta Equipment 2025 Q3 Earnings Wider Losses Amid Revenue Decline

Alta Equipment (ALTG) reported Q3 2025 results that fell short of expectations, with a 5.8% revenue decline and significantly wider net losses. The company’s adjusted EBITDA guidance for 2025 was trimmed to $168–172M, below prior estimates, while CEO Ryan Greenawalt expressed cautious optimism for Q4 driven by tax incentives and infrastructure tailwinds.

Revenue

Alta Equipment’s total revenue dipped 5.8% year-over-year to $422.60 million, missing analyst estimates of $456.70 million. The construction equipment segment saw a strategic fleet optimization effort, which contributed to the revenue decline, while product support services showed resilience with a 1.1% year-over-year increase. Rental revenue also faced challenges, underperforming expectations by $17.5 million.

Earnings/Net Income

The company’s losses deepened sharply, with a net loss of $41.60 million in Q3 2025 compared to $27.70 million in the prior-year period—a 50.2% increase. On a per-share basis, the loss widened to $1.31 from $0.86, representing a 52.3% deterioration. The adjusted EPS of -$0.35 also missed the consensus estimate of -$0.27, underscoring operational challenges. This performance reflects a concerning trend of consecutive earnings misses.

Post-Earnings Price Action Review

The strategy of purchasing Alta Equipment shares on the day of its earnings report and holding for 30 days generated a modest annualized return of 4.87%, lagging the S&P 500’s 15.6% over the same period. While the approach yielded positive returns, it underperformed the broader market, suggesting investor skepticism about the stock’s near-term prospects.

CEO Commentary

CEO Ryan Greenawalt highlighted October’s $75M construction equipment sales as the “strongest month of the year,” attributing this to deferred customer demand and tax incentives under the One Big Beautiful Bill Act. Strategic priorities include divesting non-core assets like the dock and door division, while emphasizing operational excellence and leveraging infrastructure funding tailwinds. CFO Tony Colucci outlined 2025 adjusted EBITDA guidance of $168–172M and free cash flow of $105–110M, signaling a path toward $200M EBITDA through volume normalization and margin improvements.

Guidance

Alta Equipment’s 2025 adjusted EBITDA guidance of $168–172M (vs. Q3: $41.7M) and free cash flow of $105–110M (YTD: $80M) reflects a cautious outlook. Management anticipates a fleet replenishment cycle extending into 2026, driven by infrastructure funding and tax incentives, while acknowledging headwinds from tariffs and manufacturing softness.

Additional News

Alta Equipment’s stock has faced pressure since the beginning of 2025, dropping 11.69% month-to-date and 7.2% year-to-date, underperforming the S&P 500’s 15.6% gain. Analysts remain divided, with a “buy” consensus rating but mixed revisions in earnings estimates. The company’s strategic focus on divesting non-core assets and operational efficiency aligns with broader industry trends, though persistent macroeconomic challenges could delay recovery. Recent analyst commentary highlights the importance of monitoring reindustrialization in the Great Lakes region and the impact of interest rate uncertainty on customer demand.